Insurance

Umbrella

What is an Umbrella Policy?An umbrella provides extra liability protection over your other personal insurance policies. If a loss uses up the liability limit on your auto or home policy, an umbrella policy can step in to cover the extra loss amount up to your policy limit. An umbrella can also provide coverage for certain exposures that are not covered by your regular policies, such as worldwide auto liability coverage.

A basic umbrella policy provides $1 million in liability coverage. Additional limits may also be available – contact your agent for more details.

What can be covered?A personal umbrella liability policy can provide excess coverage over many types of exposures. In addition to your auto and home liability, an umbrella can cover liability for your boat, home business, rental properties, loss assessment for condo owners and more.

Why would you need umbrella coverage?Say a neighbor slips and falls on your sidewalk and is injured – and then sues. The court awards $800,000 to the neighbor. The loss is covered by your homeowners insurance, but you only have $300,000 of liability coverage. You would be responsible for the additional $500,000. But if you have a $1,000,000 umbrella policy, it would pay the additional $500,000.